What is one of the requirements for a structured settlement in West Virginia?

A structured settlement in West Virginia involves a series of periodic payments made to an injured worker as part of a workers' compensation claim resolution. One of the requirements for establishing such a settlement is that the settlement amount must be assigned to an annuity or life insurance company. This ensures that the payments to the injured worker are secure, reliable, and funded by a financial institution that can manage the payment stream over time.

The assignment to an annuity or life insurance company is crucial because it provides both the claimant and the insurer with assurance that the payments will be made as agreed over the specified duration. Annuities are designed to provide income over time and, thus, are a common mechanism for structuring these types of settlements.

Other options, while they may involve relevant aspects of the settlement process, do not address the specific requirement for the structured settlement itself. For example, approval by the Office of Insurance Commissioner (OIC) might be necessary in some contexts but is not a fundamental requirement of the structured settlement process itself. Similarly, the idea that no requirements are needed contradicts the very nature of structured settlements, and negotiation with third parties does not pertain specifically to the establishment of a structure wherein financial security is key.